Man needs one small step – to diversify from structured products
Wed Oct 10, 2012
It is not surprising that Man sought to diversify through GLG and FRM to try and reduce dependence on structured products related to AHL
By Neil Wilson
It was not long ago that Man Group, the London-listed
investment house, appeared to have a uniquely profitable
business model - the envy of rivals, and seemingly impossible
to replicate. Forged in the heyday of ex-chief executive
Stanley Fink, it seemed to generate fees - and largesse for the
group - from every angle you looked.
Building on relationships from its origins as ED&F Man
in soft commodities, Man developed investment products that
sold in the billions to investors around the world. Its
distribution network seemed particularly strong in markets
difficult to get at for many newer hedge fund firms - in
regions such as Latin America, the Middle East and South-East
Man's products often had high-looking front-end fees -
making handsome commissions for the sales team. They also came
with what some viewed as high management fees - plus
performance fees of course. The fees, however, did...
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